Union calls for investment in clean coal technologies

PM - Thursday, 16 November , 2006 18:50:00

Reporter: Alison Caldwell

MARK COLVIN: The Australian Coal Association has welcomed union calls for greater investment in so-called clean coal technology, and called on electricity companies to do the same.

The Coal Miners' Union is worried about possible future job losses.

It's adopted a novel approach, by buying up significant parcels of shares in the industry and making plans to flex shareholder muscle.

The union wants mining companies to invest six times as much in clean coal technology.

Environmental groups including the Australian Conservation Foundation and WWF see it as a major development.

Alison Caldwell reports.

ALISON CALDWELL: Australia's 20,000 coal miners believe they're being demonised in the ongoing debate about how this country should deal with climate change.

So their union has decided to seize the agenda, calling for their employers to boost their investment in clean coal technology.

National Secretary Tony Maher.

TONY MAHER: We need to solve the climate change problem and the coal companies have got a big role to play. They make a fortune out of it and they've got to position themselves, or be positioned by others into part of the solution instead of the problem.

TONY MAHER: I mean, it's a good start but it's 15 cents a tonne. It's $300 million over five years. There's no reason why it can't be $1 a tonne.

ALISON CALDWELL: Tony Maher says ultimately his members' jobs are at stake, unless the industry can clean up its act.

TONY MAHER: I'm honest with our members. I say look, if we don't solve this climate change thing we don't have any job security so we've got to fight really hard to get it solved.

ALISON CALDWELL: The Union has been congratulated by the Australian Conservation Foundation and WWF.

WWF's CEO is Greg Bourne.

GREG BOURNE: I think this is very far-sighted. I think the CFMEU have come out with an extremely good climate change discussion paper.

Without doubt the coal companies have to look ahead at the future. They're recognising that we need to have a low-carbon future but it equally can be a prosperous future and you have to invest in your own future.

So I think the CFMEU have come out with a good call to arms.

ALISON CALDWELL: The Australian Coal Association represents black coal producers in New South Wales and Queensland.

MARK O'NEILL: The $300 million that we've already announced that we'll be spending over the next five years is actually the biggest contribution that any whole of industry has made anywhere in the world.

ALISON CALDWELL: The Union points out that BHP made $14 billion in profits this year, so $300 million even across the board, compared to one company's profits doesn't look like very much.

MARK O'NEILL: It's about what the expenditure is directed to rather than the level.

There are a certain number of projects out there that need to be done and we think $300 million, when you consider the amount available from electricity generators, who of course have also got some stake in this - they, after all, are the ones that use the coal.

And the Government representing the community who benefits from the low cost of electricity in Australia has a role to play as well.

ALISON CALDWELL: The Miners' Union is hoping to flex its shareholder muscle as well.

The Union has spent $100,000 to acquire stakes in locally and overseas listed companies including BHP Billiton, Rio Tinto and Anglo American.

TONY MAHER: If it gets you in the door at shareholders' meetings... I'm not sure if it gets us the right to sponsor resolutions, I don't know if we need to do that yet but we will do that if we need to.

MARK O'NEILL: I would imagine that the CFMEU would also be doing similar things in relation to the electricity generation industry. This is really just all part of working our way jointly towards solutions, I think.

It's nothing for the industry to be particularly concerned about. I think it's a constructive move.